Kerala HC allows bank to return FDs in EMIs

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KOCHI: Debtors moving the court for an equated monthly instalment (EMI) option to pay off loans declared as nonperforming assets is common. But now, a bank has sought EMI facility to return fixed deposits, and the Kerala high court has allowed it.
The Pattanakkad Service Cooperative Bank near Cherthala was responding to a petition filed by an investor, Dr Divya Prakash of Pattanakkad, questioning the bank’s refusal to return the fixed deposits she made in 2013.
Admitting the veracity of fixed deposit receipts produced by the petitioner and liability, the bank’s counsel sought the court’s permission to repay the amount in 10 EMIs citing financial constraints. The court directed the bank to repay the amount covered under eight fixed deposit receipts in 10 EMIs from October 10.
Petitioner’s counsel advocate B Pramod said the bank was in financial trouble, allegedly due to mismanagement, and a few other customers had also approached the high court to get back their deposits.

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